House Bill No. 1104, introduced by Kelley, amends Section 1370.9 of Title 68 of the Oklahoma Statutes, which pertains to lodging taxes levied by counties. The bill allows counties with populations under 200,000 to impose a lodging tax of up to three percent on gross proceeds from lodging services, specifically for the purpose of building and maintaining county-owned facilities that promote tourism. Before implementing this tax, a majority of registered voters must approve it through a special election or an initiative petition. The bill also stipulates that if the tax is not approved, another election cannot be called for six months.

Additionally, the bill specifies that the proceeds from the lodging tax must be deposited into a designated tourism fund and cannot be used for any other purpose. It clarifies that any tax levied will become effective on the first day of the calendar quarter following voter approval unless a different effective date is specified. The bill also includes provisions for the creation of county lodging tax revolving funds, which will be used exclusively for the designated purposes outlined in the legislation. The act is set to take effect on November 1, 2025.